Chapter 9. The Legal Closing
Now that you have completed all of the important steps from the initial review to the due diligence process to signing a term sheet or commitment letter, it is time to bring in the lawyers. This may be the entrepreneur’s first exposure to a closing, so some “handholding” may be needed along the way. The lawyers for both sides should be competent in venture capital transactions. One of the most painful processes is to try to educate a new lawyer in venture capital financing. Avoid amateurs if at all possible.
As an investor, you will want your lawyers to draw up the legal documents for closing. They should follow the commitment letter very closely. When they are completed, copies for review should be forwarded to you, ...
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